Solid start to 2012 supports Temenos full year outlook

Transcription

1 Solid start to 2012 supports Temenos full year outlook Geneva, Switzerland, 24 April, 2012 Temenos Group AG (SIX: TEMN), the market leading provider of banking solutions, today reports solid first quarter 2012 results, supporting its full year outlook. Q1 Financial and Operating highlights Strong growth in adjusted operating profits, +26% 7 new customers signed, including two tier 2 banks Continued strong cash generation, bringing DSOs below 100 days Services revenue +8%, demonstrating continued progress 15 Go-lives up from 8 in Q Series of industry analyst reports confirm product leadership Commenting on the results, Temenos CEO Guy Dubois said, I am satisfied with the progress we made in Q1. We are executing well against our strategic initiatives, increasing the share of revenues coming from the fastestgrowing and most important markets - such as retail, private wealth management (PWM), Asia and Americas - and from our installed base. In addition, we continue to drive our services business towards profitability. Lastly, the effects of the restructuring actions we took at the end of 2011 are clearly visible: adjusted costs fell by 4%, underpinning the margin improvement in the quarter. It is still too early to talk of a recovery, although there are some signs of stabilisation in our end market, and our priority remains to improve our own execution. Q1 represents a solid start to 2012 and we are confident in our ability to deliver our outlook for the full year. Revenue Revenue for the first quarter was USD 100.3m compared to USD 103.1m in the same period last year, representing a decrease of 3%. Licence revenue for the quarter was USD 23.5m, down 16% compared to Q For the LTM 2012, total revenue was USD 470.7m, up 3% on LTM 2011, with LTM licence revenue at USD 141.4m, 12% below the same period last year. Adjusted EBIT Adjusted EBIT (EBIT before one-off adjusting charges of USD 8.2m primarily related to terminated M&A discussions - and amortisation of acquired intangibles of USD3.4m) was USD 6.3m, 26% above Q Adjusted EBIT for the last twelve months was USD 89.0m compared to USD 106.2m in the prior period, representing a decline of 16%. The adjusted EBIT margin was 6%, an increase of 140 basis points on the prior year, with LTM 2011 adjusted EBIT margin at 19%, 4 percentage points lower than in the prior 12 months.

2 Earnings Per Share (EPS) Adjusted EPS, which excludes the amortisation of acquired intangibles and one-off adjusting charges, was USD 0.00 per share in the quarter, versus 0.05 per share in the same quarter of last year. The LTM adjusted EPS was USD 0.83 per share, a decline of 39% on the previous 12 months. Cash Operating cash net of taxes was an outflow of USD 19.4m in the quarter, compared to an outflow of USD 19.9m in the same quarter of On a twelve month basis, operating cashflow was USD 99.3m, 20% higher than in the comparative period, and representing a 102% conversion of adjusted cashflow into adjusted EBITDA Outlook Reiterated The company reiterates its full year outlook, set out as follows: for total revenues, the company anticipates a growth range of -5% to +6%, which implies approximately USD 450m 500m in total revenues. The company expects to achieve adjusted EBIT margins between 19% and 22%, which implies a profit range of USD 85m- 110m. Lastly, the company expects a 100% conversion of adjusted operating cashflow into adjusted EBITDA. The absolute ranges are based on FX spot rates as of the end of January Conference call At 18:30 CET/ 17:30 BST/ 12:30 EST, today, April 24, 2012, Guy Dubois, CEO and David Arnott, CFO, and Max Chuard, Director of M&A and IR, will host a conference call to present the results and to offer an update on operational performance. Listeners can access the conference call using the following dial in numbers: +44 (0) (UK Standard Int l Call) (UK Free Call) +41 (0) (Swiss Local Call) (Swiss Free Call) (US Free Call) Conference ID # A transcript will be made available on the company website 48 hours after the call. Presentation slides for the call can be accessed using the following link ENDS

3 About Temenos Founded in 1993 and listed on the Swiss Stock Exchange (SIX: TEMN), Temenos Group AG is a global provider of banking software systems in the Retail, Corporate & Correspondent, Universal, Private, Islamic and Microfinance & Community banking markets. Headquartered in Geneva with more than 60 offices worldwide, Temenos serves over 1,200 customers in more than 120 countries. Temenos software products provide advanced technology and rich functionality, incorporating best practice processes that leverage Temenos experience in over 600 implementations around the globe. Temenos advanced and automated implementation approach, provided by its strong Client Services organisation, ensures efficient and low-risk core banking platform migrations. Temenos is a leader in the IBS Sales League Table 2011; winner every year since its launch of the Best Core Banking Product in Banking Technology magazine s Readers Choice Awards and ranks 26th in the American Banker top 100 FinTech companies. Temenos customers are proven to be more profitable than their peers: data from The Banker top 1000 banks shows that Temenos customers enjoy a 54% higher return on assets, a 62% higher return on capital and a cost/income ratio that is 7.2 points lower than non-temenos customers. For more information please visit Temenos contacts: Max Chuard Director, Corporate Finance & IR Member of the Executive Board Tel: +41 (0) mchuard@temenos.com Wendy Baker Hudson Sandler Tel: +44 (0) wbaker@hudsonsandler.com Sarah Bowman Associate Director, IR Tel: Mobile: sbowman@temenos.com Ben Robinson Director, Strategic Planning Tel: +41 (0) Mobile: brobinson@temenos.com

4 TEMENOS GROUP AG All amounts are expressed in thousands of US dollars 31 March 31 December 31 March Assets Current assets Cash and cash equivalents 68, ,950 66,743 Trade receivables 259, , ,977 Other receivables 35,901 31,018 36,655 Total current assets 363, , ,375 Non-current assets Property, plant and equipment 13,547 13,210 15,199 Intangible assets 414, , ,336 Trade receivables 40,818 46,173 26,800 Other receivables 3,018 3,145 3,061 Deferred tax assets 32,387 33,814 37,687 Total non-current assets 504, , ,083 Total assets 867, , ,458 Liabilities and equity Current liabilities Trade and other payables 110, , ,752 Deferred revenues 172, , ,463 Income tax liabilities 14,094 15,667 12,350 Borrowings 10,798 11, ,399 Total current liabilities 307, , ,964 Non-current liabilities Borrowings 192, ,624 88,557 Deferred tax liabilities 7,531 8,448 12,055 Income taxes payable 1,544 1,544 1,550 Retirement benefit obligations 4,043 3,849 3,111 Trade and other payables 4,154 4,931 3,379 Total non-current liabilities 210, , ,652 Total liabilities 518, , ,616 Shareholders equity Share capital 239, , ,927 Treasury shares (113,473) (113,473) (100,803) Share premium 22,037 19,367 12,184 Fair value and other reserves (59,834) (69,997) (37,938) Retained earnings 261, , ,982 Total shareholders equity 349, , ,352 Non-controlling interest Total equity 349, , ,842 Total liabilities and equity 867, , ,458

5 TEMENOS GROUP AG All amounts are expressed in thousands of US dollars except earnings per share Three months to Three months to Twelve months to Twelve months to 31 March March March March 2011 Revenues Software licensing 23,460 28, , ,924 Maintenance 48,514 48, , ,543 Services 28,373 26, , ,688 Total revenues 100, , , ,155 Operating expenses Sales and marketing 20,010 19, ,009 85,914 Services 37,262 43, , ,190 Software development and maintenance 26,238 32, ,496 95,950 General and administrative 22,153 17,162 75,309 64,712 Total operating expenses 105, , , ,766 Operating (loss)/profit (5,316) (9,469) 2,106 62,389 Other expenses Net interest expenses (1,561) (1,143) (6,894) (9,023) Borrowing facility expenses (476) (581) (2,055) (3,458) Foreign exchange (loss)/gain (1,906) 428 (7,727) 785 Total other expenses (3,943) (1,296) (16,676) (11,696) (Loss)/profit before taxation (9,259) (10,765) (14,570) 50,693 Taxation (2,148) (181) (14,198) (442) (Loss)/profit for the period (11,407) (10,946) (28,768) 50,251 Attributable to: Equity holders of the Company (11,407) (10,877) (28,782) 50,459 Non-controlling interest - (69) 14 (208) (11,407) (10,946) (28,768) 50,251 Earnings per share (in US$): basic (0.17) (0.15) (0.42) 0.77 diluted (0.17) (0.15) (0.42) 0.74 adjusted

6 TEMENOS GROUP AG All amounts are expressed in thousands of US dollars Three months to Three months to Twelve months to Twelve months to 31 March March March March 2011 Cash flows from operating activities (Loss)/profit before taxation (9,259) (10,765) (14,570) 50,693 Adjustments: Depreciation and amortisation 11,918 11,501 47,190 41,485 Other non-cash items 7,692 8,815 23,074 28,926 Changes in working capital: Trade and other receivables 15, ,106 (6,146) Trade and other payables (27,592) (14,427) 7,741 (20,715) Deferred revenues (12,943) (14,992) 29,987 (9,094) Cash (used in)/ generated from operations (14,434) (18,959) 106,528 85,149 Income taxes paid (4,982) (934) (7,221) (2,111) Net cash (used in)/generated from operating activities (19,416) (19,893) 99,307 83,038 Cash flows from investing activities Purchase of property, plant and equipment (1,421) (1,629) (5,242) (4,732) Disposal of property, plant and equipment Purchase of intangible assets (770) (704) (4,592) (3,414) Capitalised development costs (9,644) (6,210) (41,933) (23,707) Acquisitions, net of cash acquired (2,263) - (3,730) (80,881) Disposal of subsidiary, net of cash disposed Cash effect from financial instruments (2,338) (2,057) (677) (4,992) Interest received Net cash used in investing activities (16,374) (10,515) (55,535) (116,093) Cash flows from financing activities Proceeds /(repayment) of debt (50,004) 34,988 (14,933) 47,082 Cash impact of debt refinancing ,014 Acquisition of treasury shares - (96,322) (17,150) (106,739) Interest payments (1,811) (906) (6,036) (5,203) Payment of financial instrument related expenses (115) (2,309) (1,283) (7,172) Payment of finance lease liabilities (113) (196) (618) (735) Net cash used in financing activities (52,043) (64,745) (40,020) (60,753) Effect of exchange rate changes 1,003 1,622 (2,375) 5,449 Net (decrease)/increase in cash and cash equivalents in the period (86,830) (93,531) 1,377 (88,359) Cash and cash equivalents at the beginning of the period 154, ,274 66, ,102 Cash and cash equivalents at the end of the period 68,120 66,743 68,120 66,743